• English
  • Deutsch
  • Español
  • Français
  • Italiano
  • Русский
  • Polski
  • 日本語
  • 简体中文
  • 繁體中文
  • Daily audit
  • Help
  • Contact
  • Deposit
  • Login
  • Open account
  • ABOUT US
    • About BullionVault
    • In the press
    • Reviews
    BUY/SELL BULLION
    • Live order board
    • Daily price
    • Regular Investing
    INVESTMENT GUIDE
    • Guide to gold
    • -How to buy gold
    • -Gold investment
    • -Gold investment plan
    • -Investment insurance
    • -Compare asset performance
    • Guide to silver
    • -How to buy silver
    • Guide to platinum
    • -How to buy platinum
    GOLD NEWS
    • Gold news front page
    • -Gold price news
    • -Opinion & analysis
    • -Market fundamentals
    • -Gold/Silver Investor Index
    • -Infographics
    CHARTS
    • Gold price
    • Silver price
    • Platinum price
    • Price alerts
  • Login
  • Open account
  • BUY/SELL BULLION
  • Live order board
  • Daily price
  • Regular Investing
  • INVESTMENT GUIDE
  • Guide to gold
    • ⤷
    • How to buy gold
    • Gold investment
    • Gold investment plan
    • Investment insurance
    • Compare asset performance
  • Guide to silver
    • ⤷
    • How to buy silver
  • Guide to platinum
    • ⤷
    • How to buy platinum
  • GOLD NEWS
  • Gold news front page
    • ⤷
    • Gold price news
    • Opinion & analysis
    • Market fundamentals
    • Gold/Silver Investor Index
    • Infographics
  • CHARTS
  • Gold price
  • Silver price
  • Platinum price
  • Price alerts
  • ABOUT US
  • About BullionVault
  • In the press
  • Reviews
  • Help
  • Contact
  • Daily audit
    • English
    • Deutsch
    • Español
    • Français
    • Italiano
    • Русский
    • Polski
    • 日本語
    • 简体中文
    • 繁體中文

Gold News

Live support

NEED HELP? ASK US NOW

Search form

Gold News front page

Gold Price News

Silver Price Up 3.2% on Week as Trump Turns on Opec, Inflation 'All Over' Philly Fed Data

More...

Gold Investing In Depth

Learn about gold bullion bars

Learn about gold bullion coins (and costs)

Gold investment: Why & how?

Gold Investment Analysis

  • Latest Gold Investor Index
  • Diversification: Gold as investment insurance
  • 40-year Asset Performance Comparison Table

Gold Articles

Opinion & Analysis

Gold Price News

Investment News

Gold in History

Gold Books

Gold Investor Index

Gold Infographics

Archive

  • April 2018 (23)
  • March 2018 (45)
  • February 2018 (31)
  • January 2018 (38)
  • December 2017 (31)
More...

List of authors

The Age of Gold: The California Gold Rush & the New American Dream

Monday, 6/30/2008 09:32
Image of The Age Of Gold: The California Gold Rush and the New American Dream
The Age Of Gold: The California Gold Rush and the New American Dream
Author: H. W. Brands
Publisher: Arrow Books Ltd (2006)
Binding: Paperback, 560 pages
5

And what he suggests doing about it…

WHY HAVE investors entrusted Bill Gross with so much money? asks Steve Sjuggerud in his Daily Wealth eletter.

And what's he worried about? 

Investors trust Bill because he has – for four decades – delivered the Holy Grail... He has delivered higher returns with less risk (less volatility) than his peers.  

Mostly based on Bill's reputation as a money manager, the investment company he founded – PIMCO – now has over $1 trillion in assets under management.

Multibillionaire Warren Buffett may be more of a household name as the greatest investor alive today. But Bill Gross (also a multibillionaire) deserves to be mentioned in the same breath.

And as I said, Bill is worried now...

In his October Investment Outlook newsletter, he explains why.

"Armageddon is not around the corner. I don't believe in the imminent demise of the US economy and its financial markets," he writes. "But I'm afraid for them." 

It's not the current state of things that worries Bill. He points out that today, the US still has "a federal debt/GDP less than 100%, Aaa/AA+ credit ratings, and the benefit of being the world's reserve currency." 

It's the dire path we're on that concerns him: 

IF we continue to close our eyes to existing 8% of GDP deficits, which when including Social Security, Medicaid, and Medicare liabilities compose an average estimated 11% annual "fiscal gap," then we will begin to resemble Greece before the turn of the next decade.

Unless we begin to close this gap, then the inevitable result will be that our debt/GDP ratio will continue to rise, the Fed would print money to pay for the deficiency, inflation would follow and the Dollar would inevitably decline.

Bonds would be burned to a crisp and stocks would certainly be singed; only gold and real assets would thrive within the "Ring of Fire."

The "Ring of Fire," as Bill calls it, is the six developed countries with huge deficits and fiscal gaps as of 2011: Japan, the US, the U.K., Greece, Spain, and France.

Bill explains his opinion more fully in his latest Investment Outlook letter, which you can read for free here.

In his previous Investment Outlook letter, Bill suggested how individual investors should position themselves today, and why: 

If I were an individual investor, I would do this: Balance your asset mix according to your age. Own more stocks if you are young, but more bonds if you are in your 60s, like myself... And be careful.

The age of credit expansion which led to double-digit portfolio returns is over. The age of inflation is upon us, which typically provides a headwind, not a tailwind, to securities prices – both stocks and bonds.

I like Bill Gross because he is "in the trenches" every day and he speaks his mind. Most people in the investment business with big money on the line are afraid to speak up, afraid of some sort of backlash from the government (or from their own attorneys). Bill speaks his mind regardless.

He could be wrong about all of this, of course...

The "albatross" could be circling him now. It always seems to show up for investment veterans, as I explained in this DailyWealth. But Bill Gross has a 40-year track record of drawing intelligent conclusions ahead of the crowd.

I think he is right. One likely scenario is a few more years of the Bernanke Asset Bubble, followed by what Bill Gross describes above.

Making a Gold Investment? Visit BullionVault…

  • Reddit logo
  • Facebook logo
  • Twitter logo
  • Google logo
  • Yahoo logo
  • LinkedIn logo
  • Digg logo
  • StumbleUpon logo
  • Technorati logo
  • del.icio.us logo

Adrian Ash is director of research at BullionVault, the physical gold and silver market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and is now a regular contributor to many leading analysis sites including Forbes and a regular guest on BBC national and international radio and television news. Adrian's views on the gold market have been sought by the Financial Times and Economist magazine in London; CNBC, Bloomberg and TheStreet.com in New York; Germany's Der Stern; Italy's Il Sole 24 Ore, and many other respected finance publications.

See the full archive of Adrian Ash articles on GoldNews, or get more from Adrian Ash on Google+

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News, RSS links are shown there.

Follow Us

Facebook Youtube Twitter LinkedIn

 

Mobile apps

 - live trading 24/7

 - buy & sell instantly

 - up-to-the-second charts

 

 

 

Daily news email
Go to 'communications settings' 

Get the latest daily gold price news free by email

Latest gold news by email

 

 

 

Gold Investor Index
3 April 2018

Gold Investor Index

Gold investing slips despite stockmarket drop

 

 

 

Moneycontrol
28 March 2018

Moneycontrol

3 key signals in gold

 

 

 

Daily Express
22 February 2018

Lehman Brothers collapse, 2008

10 years after the financial crisis

 

 

 

Is Bitcoin the answer?
7 December 2017

Bitcoin bitcoin bitcoin bitcoin bitcoin

Paul Tustain on money, gold and Bitcoin

 

 

 

  •  Syndicate Gold News
  •  Email us

Market Fundamentals

  • China's Gold Mining Output Shrinks Again
  • Silver Trading 'Oversold' on Record High Short Position
  • 2018 Gold Price 'Could Hit $1450'
More...
  • Cost calculator
  • Cookies
  • Terms & conditions

©BullionVault Ltd 2005-

  • Twitter
  • Facebook
  • Google Plus
  • LinkedIn
  • YouTube